p. 276 E 5-3 Installment sales method; journal entries

p. 276 E 5-3 Installment sales method; journal entries

[This is a variation of Exercise 5-2 focusing on journal entries.]

Charter Corporation, which began business in 2011, appropriately uses the installment sales method of accounting for its installment sales. The following data were obtained for sales during 2011 and 2012:

Required:

Prepare summary journal entries for 2011 and 2012 to account for the installment sales and cash collections. The company uses the perpetual inventory system.

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